Exact standing of Fall River School Department in fiscal 2015 still unclear

Tuesday

Apr 1, 2014 at 9:14 PMApr 1, 2014 at 9:22 PM

Amid rollover net school spending requirements and preliminary funding amounts, officials stress that keeping a close eye on finances is crucial.

Michael Gagne Herald News Staff Reporter @HNMikeGagne

FALL RIVER — With budget setting processes underway in the Statehouse and locally, it’s still unclear what state funding will look like for the Fall River School Department in fiscal 2015.

City Administrator Cathy Ann Viveiros noted the Chapter 70 state aid figures she had presented to the School Committee and City Council in a joint meeting Monday night had been derived from Gov. Deval Patrick’s proposed fiscal 2015 budget and are preliminary at best.

Those preliminary figures so far show an increase in Chapter 70 state aid to the district of $2.69 million, bringing the total forecast state aid amount to about $102.93 million.

The School Department has requested a total budget of $128.8 million, up 4.74 percent over fiscal 2014. It includes an operating budget of $96 million and includes a carry-over amount of $1.4 million — the amount the fiscal 2014 budget is estimated to fall short of its net school spending requirements.

The $1.4 million shortfall is the result of about $800,000 that had to be transferred to make up for unexpected student transportation cost increases last fall, as well as approximately $500,000 to $600,000 in reduced health care costs, according to school officials.

Viveiros said on Tuesday that city officials had expected the proposed schools operating budget to be around $93.3 million.

There are consequences for underfunding net school spending. According to DESE, the failure to meet net school spending requirements can result in the eventual reduction of future Chapter 70 aid, delays in certifying the municipal tax rate by the Department of Revenue or action by the state attorney general’s office.

School Committee Vice Chairman Mark Costa said that, while he recognizes the city’s financial woes, he is concerned about funding schools at net school spending, which he noted is the state-required “minimum” level schools can be funded.

“You could fund the School Department as low as at 95 percent,” Costa said. “But that needs to be made up in the following fiscal year.”

Costa said he is concerned about allowing shortfalls to carry over from year to year.

“I think what we need to all remember is that’s the minimum amount a state requires to spend on public education,” Costa said. “Other communities will look to invest in education above the minimum. What statement does that make for the community? I really think this community has to begin to look at these types of budgets: what investments can we make to improve education, safety, cleanliness, so we can draw people into this area. ... We’re losing middle-income taxpayers to communities that spend more than the minimum. It’s more than just making good on budgets.

“When you look at districts, there are some that can spend 200 percent of net school spending. A strong educational system is the economic engine for Fall River. If we make the investment, we can grow our tax base. When we don’t, we lose our taxpayers to communities that do make investments in those areas."

The school department is already funded in large part by state aid, “80 cents from every dollar,” according to Costa. “They’re funding 80 percent of our budget already. How do we change that?”

Viveiros’ presentation included other numbers, including a projected new charter school assessment amount of about $13.5 million, up from $8.5 million in 2014.

“I think it’s a good first step in this process,” Costa said of the meeting. “Both bodies were able to get together. But it’s too early to say to what extent is reality and to what extent is premature.

“We don’t know what Chapter 70 is going to look like. We’re looking to get a firmer grasp on it before a determination can be made,” he said.

Costa noted that the School Department does not generate its own revenue.

“We’re more of an expense than revenue, and that’s always been the case,” he said, adding that the district has looked for ways to reduce costs, including privatizing food service, creating an in-district day school program in the Stone Therapeutic Day School and utilizing a tiered busing schedule.

“I think it’s clear we’re willing and eager to sit and discuss not only the School Department’s finances, but the city’s finances,” Costa said.